Question about QLD anti hoon laws

[Shonky.]

I know, I know, another cliche thread, I'm sorry, but I have a specific question that google can't seem to answer for me.....

What happens when a vehicle that has secured finance against it is confiscated permanently? For example a car loan with credit union.

Under the terms of most secured loans you are not permitted to sell the vehicle without paying off the loan.

How does the law confiscate the vehicle from the rightful owner, namely the financier??

Please don't answer saying that the owner would be required to continue to pay the loan, cause I get that. My question is how can they confiscate the car whilst it is tied to a finance arrangement, possibly eliminating the credit provider's opportunity to recover the money in the event that the owner stops paying the loan?

In this case would the confiscated vehicle be returned to the finance provider?

Please don't guess, only if you know....